ADP rallies 11.8% closing $14.47 higher
Automatic Data Processing Inc. (ADP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ADP finished Thursday at 137.06 surging $14.47 (11.8%), strongly outperforming the Nasdaq 100 (5.72%). This is the biggest single-day gain ever recorded for the share. The last time we've seen such an unusually strong single-day gain on March 13th, ADP actually lost -15.25% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 130.00, the market confirmed its breakout through the previous session high after trading up to $8.14 above it intraday.
Daily Candlestick Chart (ADP as at Mar 26, 2020):
Thursday's trading range has been $15.54 (12.63%), that's far above the last trading month's daily average range of $10.52. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ADP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 123.17 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 146.28 (R1).
Though Automatic Data is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Automatic Data. Out of 263 times, ADP closed higher 50.95% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 65.40% with an average market move of 0.77%.